Using NUA with ESOP?
I have a client with about $2M in a 401k and $500K is in an ESOP with $100K basis. Can an NUA strategy be done somehow? The company is Cargill, the largest privately held corp in the US.
I have a client with about $2M in a 401k and $500K is in an ESOP with $100K basis. Can an NUA strategy be done somehow? The company is Cargill, the largest privately held corp in the US.
Permalink Submitted by Alan - IRA critic on Thu, 2019-05-16 14:57
Yes, with a proper LSD NUA can be applied to employer shares in either the 401k, the ESOP, or both. Client should determine if the ESOP employer stock basis is separate from any in the 401k. If so, NUA could be applied to the lower cost basis shares and the others could be sold within the plan or rolled over to an IRA. A 401k and ESOP are both considered plans of the same type, so the LSD would need to be done on both plans.